Poverty line index to be calculated annually

July 21st, 2008 by poobalan | View blog reactions Leave a reply »
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The government had decided that the poverty line index (PLI) will be updated annually
instead of every five years. This is due to changes in the spending
habits of consumers affected by the rise in consumer goods prices and
inflation. This news was announced by Minister in the Prime Minister’s Department Tan Sri
Amirsham Abd Aziz in Dewan Negara. The Consumer Price Index will also be recalculated.

Good news indeed as this information can be used to provide suitable assistance to the poor and the middle class. Currently, poverty line is set at RM 691 and hardcore poverty is set at half of that amount (following international standards). Some states had recently revised the poverty rate, like Selangor which set it to RM1500. Poverty line can different among states, and area (urban/rural).

I estimate a ball park figure of at least RM1200 to be the poverty line in urban area, with Klang Valley, Penang, Kuching, Kota Kinabalu and Johor Bahru poverty line set at RM1500. Rural areas may be around RM800 – RM1000.

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